A new way to travel - The Hyper Loop

I've been reading a lot about space X and Tesla lately and a proposed solution to spending 66 million on the bullet train between San Francisco and San Diago is to build a Hyper Loop. It costs 6 million to build and from what I have gathered it is a form of travel similar to the tubes you send up the pressurized pipe at the bank. I don't think I understand the physics and how it avoids a bottle neck affect. He said it should take about 30 minutes to gap the two cities and we would get rid of congestion all together.

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Feb 16 2013:
haha, well it will keep people in densely populated city centers, which is where I will be. :^) People still need to eat, right? They will just eat less from the golden arches and gas stations.

I really wish it were a porthole, but I don't think he has had that big of a revelation yet.